European Debt Collection Problems Eased

A new system for collecting debts due from people and organisations in other EU states has been announced which, it is hoped, will make the collection of undisputed commercial debts easier to achieve. It applies to judgment debts arising since 21 January 2004 and is now in place.

Under the new system a ‘European Enforcement Order’ (EEO) can be granted by the state in which the claim is pursued and can be enforced as can any judgment debt in that state. EEOs can be used in cases involving uncontested claims only.

An uncontested claim is one which has been admitted, is the result of a judgment of the court or is a default judgment.

There are particular requirements for service of EEOs which must be complied with, so those wishing to serve an EEO or recipients of EEOs who wish to contest them should take advice as soon as possible.

For more details see here.

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